As venture investors continue to invest heavily in AI model providers like OpenAI and Anthropic, the emergence of DeepSeek, a Chinese startup, introduces a cost-effective alternative. DeepSeek's models, which can be run at a fraction of the cost of their US counterparts, pose a competitive threat to the established players in the AI industry. With concerns over high valuations and reliance on expensive technology, investors are re-evaluating their positions. DeepSeek's potential to disrupt established business models is sparking interest and concern among VCs invested in costly AI startups.
DeepSeek is threatening because they open-sourced a model that's near state of the art that is priced far below anything the US labs had planned.
Much about DeepSeek remains unknown, but VCs who have bet the farm on expensive LLM startups are taking notice.
Collection
[
|
...
]